France, June 17 -- The ruling junta in Mali is tightening its hold on the gold industry as it moves to reclaim control from established foreign operators and boost local processing capacity through investment from Russia.

Mali's military government has stepped up its efforts to reclaim control of its lucrative gold industry, moving decisively this week to seize operational reins of the Loulo-Gounkoto gold complex from Canadian mining giant Barrick Gold and launching construction of a new Russian-backed refinery.

On Monday, a Malian court ordered that Barrick's flagship gold mine- Africa's largest by output - be placed under provisional administration for six months amid an escalating tax dispute.

Zoumana Makadji, a former health minist...